Byron the lease duration; year, MTM etc seems very influenced by location. Here in Wa tenants are MTM-just how it is. In Ca our tenants were always on yearly leases. The length of the lease has little to do with how long a tenant stays. Financial institutions like to see annual leases typically. As a LL in Wa I won’t offer an annual lease under any circumstances. Find out what is the norm in your state and do what the fashion in your area dictates.
I always start with a yearly lease then once that expires it automatically goes month to month if they choose not to sign another year-long lease . That being said I also have the option of giving them a notice once it starts going month-to-month if I choose to boot them out ... But as long as they're good tenants who take care of my property and always pay on time I have no problem continuing month to month as long as they give me 30 days notice prior to moving . I always prefer to have an annual lease though
Yes its good @Byron Scott , this allows you to vet them yourself and change them if you want to upgrade the units or not happy with the tenants.
Once you are happy with the tenants and upgraded the units you lock them in for 12 month contract. or 18 months if you do this in winter.
Originally posted by @Byron Scott :
@Bjorn Ahlblad thanks for the advice. How do I go about finding out what's normal for the area?
What I recommend is join your local LL association-very low cost and a great resource plus networking. They have monthly meetings and will enable you to become proficient very quickly-them and Bigger Pockets is all you need.